Manappuram Finance shares: Shares of Manappuram Finance surged by approximately 5 percent to Rs 207 apiece in the afternoon trading session on April 30 following news that its subsidiary, Asirwad Microfinance, has received approval from the Securities and Exchange Board of India (SEBI) to move forward with its initial public offering (IPO).
On February 16, the non-banking finance company (NBFC) submitted an addendum to the proposed Rs 1,500-crore IPO of Asirvad Micro Finance to SEBI. Asirvad Micro Finance had initially filed a Draft Red Herring Prospectus (DRHP) with SEBI on October 5, 2023. However, SEBI had placed the IPO on hold in January 2024.
Asirvad
Asirvad, which commenced operations in 2008 with just two branches in Tamil Nadu, has since then experienced significant growth. Presently, it boasts a widespread presence across 22 states and 4 union territories, facilitated by a robust network of 1,684 branches, as indicated by data. Serving a substantial clientele, Asirvad attends to 3.25 million active borrowers in its microfinance portfolio, which forms the bulk of its assets under management. Additionally, the company extends its services to providing loans against gold as well as catering to the needs of MSMEs.
SEBI had raised several concerns regarding the IPO’s status. While two of the queries are successfully addressed, the resolution of the third is expected to take between 15 to 30 days, as per sources cited by CNBC TV-18.
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As per the report, the IPO offers shares at a face value of Rs 10 each, with a fresh issue of equity shares totaling up to Rs 1,500 crore. Notably, there is no offer-for-sale component included in the IPO.
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